Credit boom: Buy now, pay later schemes are predicted to account for 10 per cent of UK online spending by 2024, research predicts
Buy now, pay later (BNPL) schemes were the fastest-growing online payment method in the UK last year, according to a report.
Such schemes, which are currently unregulated, are predicted to account for 10 per cent of UK online spending by 2024.
The global report was compiled by payment-processing technology provider Worldpay. It said 2020 ‘catapulted payments years ahead of where they were projected to be’.
This month it was announced that BNPL credit agreements will be regulated by the Financial Conduct Authority after a surge because of the coronavirus pandemic.
The agreements, provided by firms such as Klarna and Clearpay, give online shoppers the option to spread purchase costs over several weeks, interest-free, when they go to the checkout.
